MCEA, SEIU Local 500 and the Montgomery County Association of Administrative and Supervisory Personnel (MCAASP) have reached a tentative deal with the school system on contract savings. Here are the rough terms:
1. The 5.3 point Cost of Living Adjustment (COLA) has been eliminated for the next fiscal year.
2. The step increases that apply for employees who gain seniority will remain. Those increases range from 1 to 2.5 points.
3. Health insurance benefits will remain at the same level for at least five years.
4. The school system and the unions will establish a task force to examine employee work loads.
Additionally, MCPS is planning central office cuts of approximately 10% and classroom-related cuts of 2%. No layoffs will occur as some employees will be eligible to move within the system and some positions will be phased out through attrition. No money will be left to finance new initiatives.
The total savings for next year’s budget will be $139 million, $89 million of which will come from the COLA eliminations. That accounts for 31% of the county’s projected $448.9 million budget deficit.
Two things remain to be seen.
1. Will the County Council demand more?
The school employees have given up the vast majority of their labor cost increases. The step increases only account for $19 million. Will the Council demand those as well? And will the Council demand givebacks on health insurance? Every additional cut to employee compensation will make it harder for the school system to retain its workforce – a workforce that requires significant expense to train.
2. Will more cuts be coming from the state?
A state handoff of teacher pensions to the counties as well as cuts in Geographic Cost of Education Index (GCEI) funding are on the Annapolis budget-cutting table. If either of those reductions makes it through the General Assembly, it may well be impossible for the school system to avoid increases in class size. Our state delegation bears a huge responsibility to protect us from these consequences.
Update: The Post has more here.